2nd Quarter 2014
June 30. 2014

The markets and economy reversed course to build some positive momentum during the 2nd quarter.  The key areas of growth coming from energy, housing and the consumer sectors.  These numbers were somewhat muted during the 1st quarter, due to the severe winter weather.  Consumer prices continue to be on the tame side as far as inflation. Earnings were generally good but not great for corporations.  When looked at as a whole, growth is slowly but surely improving.  Because of this the Federal Reserve is continuing to lower its actual bond purchases per month also known as quantitative easing.  We will see where the economy is at the end of the year when this process is planned for completion.

Specific performance numbers that stand out in the quarter are energy, REITs (Real Estate Investment Trusts) and foreign stocks which dramatically picked up for the quarter.  Both emerging markets and developed foreign markets showed a dramatic improvement from the 1st quarter.  Small and mid-cap stocks became positive for the year as well.  With such a strong quarter, it begs the question – is the market overvalued?  We feel a pull- back would not be out of the question.  With the significant increase in pricing during the quarter, we used it as an opportunity to sell two positions that weren’t meeting our criteria and rebalanced portfolios.

In the office, Kayla graduated from UNM with a degree in Business Information Systems.  She now works with us full time as an assistant for trading and portfolio administration as well as a specialist of all account documents and computer programs.  We are proud to work with her and hope you will acknowledge her achievement the next time you see her in the office.

The summer brings about travel and vacations for many including those of us at Waterway.  Over the coming weeks you will notice a rotation of vacation for everyone on the team.  We believe it is essential to enjoy time away with family and friends.  We wish you a safe and happy summer!

David Michalk, ChFC®

2017-05-20T19:56:40+00:00